Electric air mobility is rapidly transforming from science fiction to a tangible industry, and Joby Aviation (JOBY) is leading that advancement. The company’s shares have risen more than 40% in the past month and more than 130% so far this year as investors become increasingly confident in its progress toward FAA certification and business readiness. Following successful demonstration flights in the US, Japan and Dubai, Joby’s eVTOL technology is gaining credibility as a viable new transportation platform.
The broader boom in aerospace innovation, driven by decarbonization goals and growing investor interest in advanced air mobility, continues to drive the sector forward. As capital and government support flows into electrified aviation, Joby stands out as one of the most advanced and well-capitalized players entering the home stretch toward commercialization.
Joby Aviation is a California-based aerospace company that designs all-electric vertical takeoff and landing (eVTOL) aircraft for urban air mobility. It is based in Santa Cruz and focuses on creating a clean, quiet and efficient air transportation ride-sharing network. With a market capitalization of around $14 billion, Joby is among the next-generation aviation giants alongside its peers including Archer Aviation (ACHR) and Lilium (LILMF).
After trading as low as $4.80 over the last twelve months, share prices have soared more than 295% to around $19.59, having hit a 52-week high of $20.95 in August. JOBY’s share price is up a whopping 40% over the past month, significantly outpacing the meager gains of the S&P 500 Index ($SPX). Investors have warmly welcomed both the company’s rapid steps toward FAA certification and the further acceleration of its international commercialization strategy.
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Despite its traction, Joby is a pre-money, pre-revenue company, as evidenced by extreme valuation multiples. The stock is selling at a price to book (P/B) of 17.29, figures that reflect speculative targets for early-stage aerospace companies. With a return on equity of -71% and no profitability on the horizon, the company’s valuation relies heavily on future hopes rather than fundamentals. However, Joby’s $991 million in cash and Toyota’s (TOYOF) $250 million strategic investment provide respectable liquidity and the backing of a world-class industrial partner.
Joby entered the FAA type certification critical path: Stage 5 (Type Inspection Clearance). Final assembly of its first conformal airframe recently began for Joby, with flight testing by Joby pilots expected to take place later this year, with FAA testing to follow shortly thereafter. The certification achieved is now 70% complete by Joby and more than 50% complete by the FAA, improving 10 points from early 2025 and bringing Joby closer to commercial readiness.
Operationally, it’s been a year that’s seen star-studded demos and collaborations for Joby. The company executed its inaugural public flight in the U.S. during the California International Air Show in Salinas, following demonstration flights conducted by ANA in Osaka, Japan, flights that will run through October 13. In the United Arab Emirates, Joby has partnered with Skyports Infrastructure and RAKTA to develop an air taxi service for Ras Al Khaimah, expanding its expanding global reach.
Joby also revealed a partnership with L3Harris (LHX) to create a gas turbine hybrid version of its current aircraft for military purposes. Flight tests of the hybrid version should begin this fall, and operational demonstrations are planned for military exercises in 2026. It shows how its ambition is to dominate both the commercial and government sectors, a two-track policy like that of the main aerospace giants.
As a key milestone on the path to monetization, Joby signed a definitive agreement to purchase the passenger business of Blade Air Mobility. The transaction should enable better market access and infrastructure, both in New York City and Southern Europe, alongside Joby’s expansion deals with Abdul Latif Jameel and ANA for a potential fleet of around 300 aircraft. The purchase is Joby’s initial step toward creating end-to-end customer operations, an important benefit for establishing early network density.
Manufacturing expansion is also underway. The Marina, California facility now spans 435,000 square feet following the expansion, doubling production capacity to 24 aircraft per year. Meanwhile, the Dayton, Ohio, plant is ramping up production to produce up to 500 aircraft a year over time, signaling Joby’s transition from the prototype to production phase.
Wall Street is divided on valuation following the recent rally, with a current consensus rating of “Hold” and a price target of $10.83, which should mean a potential downside of around 43% compared to current prices. With a high of $22, it should mean there is little upside of around 17%, but a low of $6 should mean returning to pre-surge prices. The big difference here is due to ambiguity regarding certification timelines, unit economics, and the pace of commercial adoption.
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At the date of publication, Yiannis Zourmpanos held a position at: JOBY. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com
